The market is becoming saturated next year the industry towards the development of new applications

2015 was a tough year for most LED operators. TrendForce's green energy division LEDinside research associate Chu Chao said in, although LED lighting demand continues to rise, and replace the traditional lighting applications, but the average price decline of LED pile up in excess of requirement of 30-40% range, manufacturers face losses, even gradually withdraw from the market.

LEDinside estimates this year's global high brightness LED market output value of $14 billion 520 million, an annual growth of only $2% in 2016, only $14 billion 950 million, an increase of 3%. Although the LED number continued to grow in the lighting demand driven, but enhance the efficiency of the use of LED to reduce the number of stars, plus depreciation pressure is still in the future five years, the LED industry compound annual growth rate will not be easy to appear as more than 10% growth rate in the past, the industry growth will be slowing down.

Outlook 2016 LED industry key trends are as follows:

Manufacturers continue to withdraw from the market, LED price decline will slow down

This year the backlight and lighting market demand as expected, the average price of LED chip and package all fell sharply, the second half showing a fall, some of the specifications of the price even material costs have come to the water level, firms facing losses. Despite the short term LED is still facing the pressure of continued price cuts, but the price has been close to the cost of production of many manufacturers, can be expected as more and more manufacturers to withdraw from the market, the future decline in the price of space will be gradually reduced.

Chinese LED manufacturers to expand overseas mergers and acquisitions, positive transformation

Chu Yu Chao pointed out that the stock market fund-raising and financial support from the government, overseas enterprises have China merger action, and targeting the international LED patent and brand lighting manufacturers, to reinforce its patent and overseas sales channels. In addition, many LED manufacturers have begun to transition, through the means of merger across the foot of other areas, in order to get rid of the Red Sea market price competition.

TV LED backlight into crystal LED technology, continued to push up the permeability

In the past due to yield and production costs, only a few manufacturers will be covered LED (Flip Chip LED) technology as the main product. Since 2014, more and more companies in Taiwan and South Korea into the crystal LED technology development, resulting in quality improvement and cost reduction, so the benefits gradually emerge. This year, Han Department LED manufacturers are more imported crystal LED technology to the field of TV LED backlight, Korean TV brands are also used as a large LED backlight. Each factory actively promote the crystal LED, or even a smaller chip size package LED (Chip Scale Package LED) in the field of TV backlight. LEDinside estimated that the LED crystal technology in the TV LED backlight penetration will increase to more than 50% in 2017.

Low power, replaceable light products will rapidly enhance permeability

Replacement type light source products (LED bulb lamp / lamp) specifications have been gradually standardized, coupled with the positive promotion of each lighting brand manufacturers, the current majority of the country's LED bulb retail price has been close to the traditional energy-saving lamp prices. In 2016, the lighting manufacturers will continue to find lower cost solutions, in addition to LED, power supply and other components, and it is also one of the whole system of the price of space; in addition, manufacturers also hope that through low retail prices and expand product sales to increase market share. LEDinside is expected to replace the light source products will be popular in three years.

Special applications for profit focus, the application of invisible light gradually attention

White LED prices continue to kill, profit margins shrink, so the new special application has become the key to improve profitability, which is not visible in the LED UV (ultraviolet) or IR (infrared) LED applications are LED manufacturers new favorite. Compared with LED backlight lighting or other applications, not visible LED market scale is limited, but because of the high-end technology, in favor of customization production, and the need to cooperate closely with the factory system, so the high barriers to entry, product gross margin is also significantly better than white LED.

Taking UV LED as an example, the exposure and curing applications is the largest, but also the application of disinfection has been paid more and more attention, especially the UVC band because of high technical threshold, the supplier is relatively small, and therefore attract various manufacturers engaged in the development of.

IR and LED in the remote control or control applications. However, the IR LED market is widely used, including a variety of image / somatosensory / position sensing, proximity switches, biometric and pulse oximetry, etc.. Future handheld applications (such as information security, health management, and its added value), profit space will be more likely to drive the steady development of the IR LED market.

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